You are here » Home » Companies » Company Overview » Baba Arts Ltd

Baba Arts Ltd.

BSE: 532380 Sector: Media
NSE: N.A. ISIN Code: INE893A01036
BSE LIVE 15:40 | 17 Nov 2.91 -0.01
(-0.34%)
OPEN

2.80

HIGH

2.99

LOW

2.80

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 2.80
PREVIOUS CLOSE 2.92
VOLUME 13321
52-Week high 4.47
52-Week low 2.21
P/E 48.50
Mkt Cap.(Rs cr) 17
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2.80
CLOSE 2.92
VOLUME 13321
52-Week high 4.47
52-Week low 2.21
P/E 48.50
Mkt Cap.(Rs cr) 17
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Baba Arts Ltd. (BABAARTS) - Auditors Report

Company auditors report

To the Members of Baba Arts Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Baba Arts Limited(‘the Company') which comprise the Balance Sheet as at March 31 2016 the Statementof Profit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (‘the Act') with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including accounting standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancials control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and fair presentationof the financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2015 ("Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the annexure a statement of the matters specified in paragraphs 3 and4 of the Order to the extent applicable.

2. As required by section 143(3) of the Act we report that:

a. we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;

b. in our opinion proper books of account as required by law have been kept by theCompany so far as appears from the examination of those books;

c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this report are in agreement with the books of account;

d. in our opinion the aforesaid standalone financial statements comply with theaccounting standards notified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 ;

e. on the basis of written representations received from the directors as on March 312016 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2016 from being appointed as a director in terms of section 164(2) of theAct.

f. with respect to the adequacy of the internal financial control over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

g. with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the companies (Audit and Auditor) Rule 2014 in our opinion tothe best of our information and according to the explanations given to us: i) The Companyhas disclosed the impact of pending litigations on its financial position in its financialstatements – Refer Note 22.

ii) The Company does not foresee any material loss on long term contracts includingderivative contracts.

iii) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

For Prakkash Muni & Associates
Chartered Accountants
Firm Registration No.: 111792W
Prakkash R Muni
Place: Mumbai Partner
Date:24th May 2016 Membership No. 030544

Annexure referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date

I. a) The Company has maintained proper records showingfull particulars includingquantitative detailsand situation of fixed assets.

b) The fixed assets of the Company have been physically verified by the Managementduring the year and no material discrepancies between the book records and the physicalinventory have been noticed.

(c) According to the information and explanation given to us the title deeds ofimmovable properties are held in the name of the company.

II. Since the Company is having only intellectual property rights as its inventorytherefore the para 3(ii) of the Order relating to physical verification of inventories isnot applicable.

III. The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under Section 189 of the CompaniesAct.Hence the requirements of sub clause (a) (b) & (c) to clause (iii) of paragraph 3of the said Order are not applicable to the Company.

IV. According to the information and explanation given to us the Company has compliedwith the provisions of section 185 and 186 of the companies Act 2013in respect of loansand investments made and guarantees and security provided by it.

V. The Company has not accepted any deposits from the public under the provisions ofSections 73 to 76 or any relevant provisions of the Companies Act and the rules framedthere under.

VI. Pursuant to the rules made by the Central Government of India the Company is notrequired to maintain cost records under sub-section (1) of section 148 of the CompaniesAct in respect of its products.

VII. (a) According to the information and explanation given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues in respect of investor education and protection fundincome-tax sales- tax wealth tax service tax customs duty excise duty value addedtax cess and other material statutory dues as applicable with the appropriate authoritiesin India.

(b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues in respect of income-tax sales tax wealth taxservice tax excise duty custom duty and cess as at March 31 2016 which have not beendeposited on account of any dispute. The particulars of dues ofvalue added tax as at March31 2016 which has not been deposited on account of a dispute is as follows:

Name of Statute Nature of Dues Amount in Rs. Period to Which the amount relates From where the dispute is pending
1) Maharashtra Value Added Tax MVAT 1917532 2011-12 Joint Commissioner sales tax

VIII. The Company does not have any loans or borrowings from any financialinstitutions banks government or debenture holders during the year. AccordinglyParagraph 3 (viii) of the Order is not applicable.

IX. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3(ix) of the Order is not applicable.

X. According to the information and explanations given to us we have neither comeacross any instance of fraud by the company or any fraud on the Company by its officers oremployees has been noticed or reported during the year nor have been informed of suchcase by the management.

XI The Company has not paid/provided any managerial remuneration under the provisionsof section 197 read with Schedule V to the Companies Act 2013.

XII In our opinion and according to the information and explanation given to us theCompany is not a nidhi company.

Accordingly paragraph 3(xii) of the Order is not applicable.

XIII According to the information and explanations given to us and the records of theCompany examined by us all transactions with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the Financial Statements etc. as required by the Accounting Standard (AS) 18– Related Party Transaction.

XIV According to the information and explanations given to us and the records of theCompany examined by us the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview.

XV According to the information and explanations given to us and the records of theCompany examined by us the company has not entered into any non-cash transactions withdirectors or persons connected with him.

XVI The company is not required to be registered under section 45-IA of the ReserveBank of India Act1934.

For Prakkash Muni & Associates
Chartered Accountants
Firm Registration No.:111792W
Prakkash R Muni
Place: Mumbai Partner
Date: 24th May 2016 Membership No. 030544

Annexure B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 (‘the Act')

We have audited the internal financial controls over financial reporting of Baba ArtsLimited (‘the Company') as of 31 March 2016 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the ‘Guidance Note') and the Standards on Auditing issued by ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors' judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorizations of theManagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Prakkash Muni & Associates
Chartered Accountants
Firm Registration No.:111792W
Prakkash Muni
Place: Mumbai Partner
Date: 24th May 2016 Membership No. 30544